Monday, 31 December 2012

“Two feasibility studies, one project permitted, another project’s EIA ready to go, resource updates in both projects and a good year at Corihuarmi with a sniff of another year’s production at the mine,” means Minera ticked a lot of boxes, he told Proactive Investors.

Two of the key announcements came through at the tail-end of 2012 with a feasibility study at its flagship project at Ollachea in Peru and permission to go ahead with its Don Nicolas development in Argentina.

Chamberlain says the next big milestone is to finance the projects.

In Argentina [at Don Nicolas], “We are looking seriously at self-financing,” he told Proactive Investors, with any deal secured against the assets.

In Peru [at Ollachea], "We are seeing interest from banks and looking at a more traditional debt/equity arrangement."

On both projects, he said technically things look very good and in spite of some of the headlines concerning Argentina, the relationship with the authorities in Santa Cruz province is very good.

“There are not many places you can get a development permit in five months,” he said.

Minera has also signed a 10-year co-operation agreement with local communities while the new mine is set to be a significant employer in the Patagonia region.

Don Nicolas is scheduled to start construction next year with a capital cost of US$56 mln and produce 55,000 ounces when up and running.

Chamberlain, though, sees a lot more upside in Argentina.

As well as Don Nicolas, which is expected to start producing early in 2014, Minera has made a discovery at Escondido, which is also located on the Deseado Massif in Santa Cruz and adjoins Mariana Resources’ Las Calandrias deposit.

According to Chamberlain: “The Massif has huge upside potential.We have got 26,000 hectares and 100kms of veins we haven’t tested yet so we have lots of targets."

“It’s a good patch and it’s emerging all the time,” he adds.

At Ollachea, drilling underground will start next year to test the eastern strike and down dip potential.

The project was assigned a net present value of US$155mln post-tax at a gold price of US$1,300 and upfront capex of US$178mln in the recent definitive feasibility study.

Chamberlain said Don Nicolas and Ollachea will be short payback, low operating cost projects, which will help both raise the funds for the next stages.

“Don Nicolas is a two year or less payback, which is attractive to financiers who like to get their money out.

"Ollachea is 3.5 years payback but for a long life mine that’s not too bad.”

Minera already has a producing mine at Corihuarmi in Peru. “It has produced 20,700 ounces this year and brings in good cash.”

The mine is winding down but Minera may be able to extend the life by another year, to 2016, says Chamberlain, which would be a very handy boost.

"If Corihuarmi can be extended until 2016, this will mesh very nicely with the opening of Don Nicolas in 2014 and potentially Ollachea in 2015.

Chamberlain is optimistic on the financing front despite the currency difficult background.

“The year has been good and things are coming together nicely” he concluded.

The company said that while it had targeted the fourth quarter of 2012 to announce the results of its PEA, the document’s “relative complexity” and Great Western’s decision to undertake a revised resource estimate, extended the timeframe for the release.

Great Western also said that its search committee is in the final stages of the selection process for a new CEO and anticipates an announcement early in 2013.

"We realize the past months have been a trying time for investors,” said interim president and CEO Robert Quinn.

“Company management is aware of the impact of slippages from previously announced time targets.

“We remain committed to executing our plan that will create one of the most highly integrated rare earth companies outside of China.”

Great Western is a rare earth processor, whose specialty alloys are used in the magnet, battery, defence and aerospace industries.

Produced at the company’s subsidiaries Less Common Metals (LCM) in Birkenhead, U.K. and Great Western Technologies (GWT) in Troy, Michigan, these alloys contain aluminum, nickel, cobalt and rare earth elements (REE).

As part of its vertical integration strategy, Great Western also holds 100 per cent of Rare Earth Extraction Co. Limited, which owns a 74-per-cent equity stake in the Steenkampskraal mine in South Africa.

The former producing Steenkampskraal mine is under development through refurbishment, as the company builds a rare earth mixed chloride plant and a rare earth solvent extraction separation plant near the mine.

In an update of operations, the company said that during the development of the basic assessment report on the land where it plans to construct its Vredendal separation plant, it decided to increase the amount of land designated for the project.

As a result of the site expansion, a road transport study was needed. Great Western said it anticipates the expanded report will be submitted to the South African Department of Environmental Affairs and Development Planning by mid-February 2013.

In addition, a Land Use Planning Ordinance application is underway and is expected to be completed by the end of the first quarter of 2013.

At its Steenkampskraal mixed chloride production plant, the company expects on-site construction work to begin in the first quarter of 2013.

Looking ahead to early 2013, Great Western said it expects to complete “a number of significant milestone events”, including the release of the PEA – which will incorporate a new resource estimate and timelines for the next steps in the Steenkampskraal construction process.

Significantly, the company said the PEA will enable it to publicly discuss financial projections.

Additionally, Great Western anticipates production to begin at LCM using the new strip cast furnace and expects to announce the arrival of a second strip cast furnace.

In early 2013, the company said it also plans to report on the chloride production plant at Steenkampskraal, the separation plant at Vredendal as well as update on the spinoff of its non-South African exploration properties.

Additional assay results from the ongoing exploration program at its Steenkampskraal mine are also expected in the early stages of 2013.

Great Western Minerals Group is focused on becoming an integrated rare earth producer. In addition to Steenkampskraal, the company also holds interests in four rare earth exploration and development properties in North America.

Afferro Mining (LON:AFF, CVE:AFF) has confirmed it has received a takeover offer from International Mining and Infrastructure (IMIC) after speculation in the press.

Afferro said it has received an initial approach from IMIC, adding that its suitor would be prepared to make a bid at between 115p and 140p per share for the whole of the company.

The amount will be met by an undisclosed mix of cash, yet to be raised by IMIC and new IMIC shares.

"The approach from IMIC is at a very early stage and there can be no certainty that a formal offer will be forthcoming," said Afferro.

"In addition, Afferro continues to have discussions with other interested parties regarding a possible offer for the issued and to be issued share capital of Afferro."

The company, whose portfolio includes the wholly-owned Nkout iron ore project in Cameroon, is currently under exclusivity obligations with one other party, which means Afferro can not kick off talks with IMIC until January 13.

The company insisted that there is no certainty a deal will be struck.

Friday, 28 December 2012

Development stage biopharmaceutical company Soligenix(OTCQB:SNGX) Friday said that it has increased its cash position to about $3.3 million after receiving funding from a tax transfer program.

The company said it recently received roughly $521,000 in non-dilutive financing through the State of New Jersey's Technology Business Tax Certificate Transfer Program.

The program enables approved, unprofitable biotechnology businesses to sell their unused net operating loss carryovers (NOLs) and unused research and development tax credits for at least 80 per cent of the value of the tax benefits to unaffiliated, profitable corporate taxpayers in New Jersey.

Soligenix noted that the program allows biotechnology businesses with NOLs to turn their tax losses and credits into cash proceeds to fund more research and development, buy equipment and/or facilities, or cover other allowable expenditures.

"As we are always looking for non-dilutive ways to fund our company, we are once again very pleased with the New Jersey Economic Development Authority’s decision to approve our application in this year's program," said president and CEO Christopher J. Schaber, PhD.

On Thursday, the company announced that it has regained the North American and European commercial rights to its oral treatment for inflammatory gastrointestinal disorders.

The company's oral formulation of beclomethasone dipropionate (BDP), a topically active corticosteroid, is currently in development for pediatric Crohn's disease, acute radiation enteritis, and gastrointestinal Graft-versus-Host disease (GVHD).

Through an amendment of its collaborative agreement with Sigma-Tau Pharmaceuticals, Soligenix said it is now free to commercialize or enter into commercialization agreements for its oral BDP suite of products “with other parties without limitation”.

Soligenix is currently developing oral formulations of the drug, including its two-tablet system specifically designed for delivery of BDP throughout the small bowel and the colon.

Earlier this month, the biopharmaceutical company also acquired SGX94 - a drug technology that regulates the immune system.

Soligenix is planning to develop the drug technology in both of its key units, namely cancer supportive care in its biotherapeutics segment, and infectious diseases under its vaccines/biodefense division.

Meanwhile, through its biodefense division, the company is developing vaccines including RiVax, designed to protect against the lethal effects of exposure to ricin toxin and VeloThrax, a vaccine against anthrax exposure.

Thursday, 27 December 2012

Vancouver-based Canamex Resources Corp. (CVE:CSQ) (OTCQX:CNMXF) Thursday announced it has closed a $21.3 million financing with Hecla Canada Ltd.

Earlier this month, the company said that giant U.S. silver producer Hecla Mining (NYSE:HL) had subscribed for more shares of the company, allowing Hecla to maintain its stake in Canamex.

Under the terms of an ancillary rights agreement with Hecla 's Canadian subsidiary, Hecla subscribed for an additional 141,911 common shares of Canamex, at a price of 15 cents each, for total proceeds of about $21.3 million. Proceeds will be used for general corporate purposes.

Hecla has agreed that it will not sell the shares it has acquired for a period of one year following the closing of the equity financing between the two companies in November. Hecla owns roughly 15 per cent of Canamex.

Canamex Resources is focused on two gold exploration projects, the Aranka North gold project in Guyana, South America and the Bruner gold project in Nevada, USA.

The Bruner project is located in central Nevada, about 45 miles northwest of the Round Mountain Mine, which has produced over 10 million ounces of gold over a 30 year period. Historically, Bruner has produced around 100,000 ounces, at an average grade of 0.56 ounces per ton.

Development-stage biopharmaceutical company Soligenix(OTCQB:SNGX)Thursday said that it has regained the North American and European commercial rights to its oral treatment for inflammatory gastrointestinal disorders.

The company's oral formulation of beclomethasone dipropionate (BDP), a topically active corticosteroid, is currently in development for pediatric Crohn's disease, acute radiation enteritis, and gastrointestinal Graft-versus-Host disease (GVHD).

Through an amendment of its collaborative agreement with Sigma-Tau Pharmaceuticals, Soligenix said it is now free to commercialize or enter into commercialization agreements for its oral BDP suite of products “with other parties without limitation”.

Oral BDP is a potent, topically active corticosteroid that has a local effect on inflamed tissue. The drug has been marketed in the U.S. and worldwide since the early 1970s as the active pharmaceutical ingredient in a nasal spray and in a metered-dose inhaler for the treatment of patients with allergic rhinitis and asthma.

In addition to issued patents and pending worldwide patent applications held by or exclusively licensed to Soligenix, BDP also benefits from several orphan drug designations, the company noted.

Soligenix is currently developing oral formulations of the drug, including its two-tablet system specifically designed for delivery of BDP throughout the small bowel and the colon.

Earlier this month, the biopharmaceutical company also acquired SGX94 - a drug technology that regulates the immune system.

The innate defense regulator (IDR) regulates the immune system to reduce inflammation, eliminate infection, and improve tissue healing by binding to the regulatory protein p62.

Soligenix is planning to develop the drug technology in both of its key units, namely cancer supportive care in its biotherapeutics segment, and infectious diseases under its vaccines/biodefense division.

The company has acquired all rights to the technology as part of the deal, including composition of matter patents, and preclinical and phase 1 clinical study data.

SGX94, which Soligenix says is "highly synergistic" with its existing development pipeline, is poised to enter phase 2 clinical testing in humans.

Meanwhile, through its biodefense division, the company is developing vaccines including RiVax, designed to protect against the lethal effects of exposure to ricin toxin and VeloThrax, a vaccine against anthrax exposure.

WesternZagros Resources (CVE:WZR) Thursday announced it has appointed William Jack to the position of general manager in Kurdistan, effective February 1, 2013.

Jack will also be resident in Iraqi Kurdistan when he assumes the role of GM, as Ian McIntosh, VP of the Kurdistan business unit has decided to retire in January 2013, after three years with the company.

"Ian [McIntosh] has been an important member of the company's executive and has built our Kurdistan organization into a highly effective team,” said CEO Simon Hatfield.

“Among his many contributions, Ian was instrumental in quickly preparing the Sarqala-1 well for an extended well test.”

Hatfield said the company is happy to welcome Jack, whose international experience “is very well suited” to its exploration and appraisal plans.

WesternZagros said that as GM in Kurdistan, Jack will be a member of the executive management team and will assume responsibility for government liaison and in-country administration.

Jack has 30 years of “progressive leadership” in international oil and gas roles, the company noted, having spent the majority of his career with BP (NYSE:BP) (LON:BP) on projects in the United Kingdom, Middle East, Russia, Australia and North America.

Jack’s most recent appointment was general and country manager in Tunisia for Petrofac (LON:PFC).

WesternZagros is engaged in acquiring properties and exploring for, developing and producing crude oil and natural gas in the Kurdistan Region of Iraq.

The junior oil and gas explorer has a 40 per cent working interest in the Kurdamir block, while Talisman Energy (TSE:TLM) also holds 40 per cent and acts as the operator, with the Kurdistan regional government holding the remaining 20 per cent.

In an investor webcast earlier this month, the company said while it is focusing on its Kurdamir wells in the Oligocene and Eocene reservoirs, it also has its sights on the Baram prospect as it heads into 2013.

The Baram prospect was previously viewed as separate, but WesternZagros said it now knows that oil leg expends well beyond the limits of the four way closure on Kurdamir.

Hatfield said that there is a strong possibility that the Baram prospect is an extension of the Kurdamir structure.

While there are no firm numbers for Baram yet, Hatfield said it is still an exciting prospect for the company.

Looking ahead, an exploration well is planned at Baram, targeting the Oligocene and Eocene reservoirs. WesternZagros said the well is anticipated to spud in July of 2013.

At its South Garmian block, the company is planning for a Hasira-1 exploration commitment well to evaluate the Oligocene and Upper Fars, and appraise the Jeribe reservoir in the Sarqala structure.

Additionally, a shallow drill program is on the horizon for the Upper Bakhtiari reservoir, as well as 3D seismic programs in the Sarqala and Mil Qasim structures.

Monday, 24 December 2012

Stonecap Securities analyst Christos Doulis took a closer look at SilverCrest Mines (CVE:SVL) Monday, after the company released drill results from its La Joya property in Durango, Mexico that extended mineralization beyond the current resource estimate.

The silver miner released assay results from the final 15 drill holes in its phase II drilling campaign at La Joya on Friday. A resource update is expected in the coming weeks, to be followed by a preliminary economic assessment in 2013 that will evaluate a “starter pit” scenario at La Joya.

Eight of the 15 holes tested the southern extension of the main mineralized trend, with the headline hole returning 80 metres at 78.8 grams per tonne (g/t) silver, 0.31 g/t gold and 0.5% copper.

The company has now started phase III drilling at the property, which will be focused on continuing to expand the resource, with infill drilling on higher grade areas.

"We continue to maintain that at current share prices, investors are getting the Santa Elena mine for a good price and are paying nothing for SilverCrest’s La Joya project," analyst Doulis notes.

"An updated resource estimate for La Joya is expected in the coming weeks, which could be a significant catalyst for SilverCrest shares. A PFS [prefeasibility study] is also expected in Q1 for the expansion plan at Santa Elena."

Aside from the La Joya property, Silver Crest is in production from its Santa Elena mine in Mexico. A three year expansion plan is underway to double metals production at this mine, while exploration programs are advancing the definition of the large polymetallic deposit at the La Joya property.

The Vancouver-based company said last month that profit and revenues increased in its third quarter, with record silver production allowing it to raise its annual forecast for the year.

Doulis maintained his "outperform" rating on SilverCrest, and $3.85 price target - up from the silver company's current trading price of around $2.43, which was up almost 4% on Monday morning.

The analyst notes that Orvana has reported cost data in line with prior estimates and has begun to generate free cash flow, but it continues to face working capital constraints.

For the quarter that ended September 30, the multi-mine gold and copper producer reported a net loss of $2.0 million, but adjusted net income was positive at $12.3 million, or 9 cents per share.

This compares to an adjusted net loss of $4.8 million, or 4 cents per share, in the year-ago period.

Revenues rose to $50.6 million from $10.6 million in the fourth quarter of last year.

Orvana's primary asset is the El Valle-Boinas/Carles (EVBC) gold-copper mine in northern Spain. It also owns and operates the Don Mario Mine in Bolivia, processing its copper-gold-silver Upper Mineralized Zone (UMZ) deposit, and is advancing its Copperwood copper project in Michigan, USA.

Cash flow provided by operations before changes in working capital was $14.5 million in the quarter and capital expenditures were $12.6 million, resulting in positive free cash flow of $1.9 million.

Cash costs at its EVBC mine were $720 an ounce of gold in the quarter, in line with the company's previous estimate of $750 an ounce, Doulis notes, and down from $806 an ounce in the previous quarter.

Co-product cash costs at Don Mario were $1.92/lb copper, $969/oz gold and $18.69/oz silver, also in line with Orvana’s previous forecast.

"While beginning to generate positive free cash flow is a major milestone for Orvana, given the small amount of free cash flow generated and the substantial debt still on Orvana’s balance sheet, we expect working capital to remain constrained," Doulis concludes.

The analyst will review his estimates and valuation following the release of Orvana's full financial results and conference call, which is scheduled for January 4.

Doulis' price target of $1.50 is still up considerably from Orvana's current stock price of 81 cents.

Homestake Resource Corp (CVE:HSR) says it plans to raise up to almost $1.7 million for its Kinskuch exploration program in British Columbia through an equity financing.

The non-brokered financing will be made up of flow-through and non flow-through units.

The company also said in its statement late Friday that the private placement financing it announced in September will not go ahead.

In the newest offering, the company will issue a maximum of 4.75 million flow-through units at 20 cents each, for a total of up to $950,000.

It will also issue 4.7 million non flow-through units for 15 cents each, raising up to $705,000.

The flow through units will be made up of one flow-through share and one half share purchase warrant, with each whole warrant allowing the holder to buy one common share at a price of 25 cents for a period of two years.

The non flow through units, meanwhile, will consist of one common share and one share purchase warrant, with each whole warrant allowing the holder to buy another common share at a price of 20 cents for a period of two years.

The new funds will be used for Canadian exploration expenses, as defined under the Canadian Income Tax Act, for the company's exploration of the Kinskuch project in British Columbia, as well as for working capital.

The Kinskuch project is a large 623 square kilometre property located directly east of the company's Homestake Ridge property, and extends south around 30 km to tidewater at Alice Arm/Kitsault in Northwestern British Columbia.

Rock and soil geochemical results from the 2012 exploration program continue to show "extensive mineralization" throughout the property, the company said.

Specifically, earlier this month, the company announced that surface soil and rock sampling on the Illiance River trend extended silver-lead-zinc mineralization south of Homestake's 2011 drilling by an additional 750 metres, and expanded the overall trend to more than 4.5 kilometres of strike length.

Mineralization along the entire trend remains open in all directions.

The Illiance River trend is the first of "several drill-ready target areas" found on the property located next to the company's own Homestake Ridge project, and will be the focus of the 2013 exploration program.

The Homestake Ridge project is being advanced as a potential high-grade underground mining operation with a current NI 43-101 compliant indicated resource, at a 3.0 g/t gold equivalent cut-off, of 191,000 ounces gold and 1,350,000 ounces silver plus an inferred resource of 530,000 ounces gold and 13,470,000 ounces silver.

Homestake also holds a 9.76 percent interest in Bravada Gold Corporation (CVE:BVA), which is exploring 21 projects in Nevada.

Rubicon Minerals Corp (TSE:RMX) (NYSE-MKT:RBY) said late Friday that it considers the legal action brought upon the company by the Wabauskang First Nation (WFN) group to be without merit.

The gold explorer, which is focused on its Phoneix gold project in Red Lake, Ontario, has been named in a petition for judicial review, focused on the Province of Ontario's authority to approve a production closure plan.

"While we remain committed to the consultation process and invite WFN back to the negotiating table to discuss the terms of a benefits agreement, we will vigorously defend our record and this petition which we believe to be without merit," Rubicon said in a statement on Friday.

Construction activities, including shaft sinking and mill construction continue to progress at the Phoenix project, the company added.

Earlier this month, Rubicon said it had learned via press reports that WFN instructed its lawyers to file a lawsuit related to the company's Phoenix gold project in Red Lake.

The gold exploration and development company has been engaged in discussions with the First Nation group since January 2009.

The company said that it had confirmed its intention to continue to consult with WFN with respect to the Phoenix project as part of its closure plan.

On Friday, Rubicon reiterated that it is "proud of its record of its consultations with Aboriginal Communities and of its actions in the Red Lake district including its commitment to safe and responsible resource development and the successful provision of contracting and employment opportunities for Aboriginal Communities".

The Toronto-based company will deal with the legal proceedings with new chief Mike Lalonde at the helm, who will assume the position of president and CEO at the start of the new year, replacing prior chief David Adamson.

The F2 gold deposit at Phoenix boasts an indicated resource of 1.02 million tonnes, grading 14.5 grams per tonne gold for a total of 477,000 ounces of gold, and an inferred resource of 4.23 million tonnes, grading 17.0 grams for a total of 2.31 million ounces of the precious metal.

The project produced a preliminary economic assessment that allowed the company to go to market earlier this year with a bought deal equity financing of just over C$200 million.

The company is carrying out a 12-month, $82.8 million program designed to optimize certain aspects of its preliminary economic assessment, accelerate site infrastructure and expand on current engineering studies.

The Phoenix project, which is fully permitted and funded, is expected to produce 180,000 ounces of gold per year for the 12 years of mine life, with grades of roughly 14 grams per tonne (g/t) and a forecasted 92.5 per cent recovery.

Lalonde said in June that Rubicon is looking to begin “producing gold bars” in early 2014 under the existing PEA.

The placement was made up of 2.98 million units at a price of 12.5 cents each, for total proceeds of $373,020.

Each unit consists of one common share and one share purchase warrant, with every warrant allowing the holder to buy another share at a price of 25 cents for a period of two years.

The new funds will be used to advance the company's Elk Creek carbonatite project, as well as for general working capital.

Situated in the mining friendly state of Nebraska, Quantum says its Elk Creek carbonatite niobium project is the only significant niobium deposit in the U.S., where 100% of its niobium needs are imported.

This year saw U.S. legislation naming niobium as a strategic and critical metal, highlighting the importance of the mineral for both economic and military uses.

With the size and grade of this mineral deposit, the company says it is garnering the attention of "a number of significant domestic and international corporations".

Indeed, the deposit has an NI 43-101 resource of 19.3 million tonnes grading 0.67% in the indicated category, containing over 129,182 tonnes of Nb2O5, and 83.3 million tonnes grading 0.63% in the inferred category, containing over 129,182 tonnes of Nb2O5.

Niobium is used in the production of high-grade structural steel, and is used in super alloys for applications like jet engine parts, gas turbines and electronic components.

"Although challenging financial markets persisted throughout the year, we have succeeded in expanding the number of potential partners we are discussing the Elk Creek project with," says Peter Dickie, who was again re-appointed president and CEO at the annual general meeting earlier this month.

"With these discussions continuing on several fronts, we hope to reach a successful conclusion with one or more of the parties early in the new year."

In late November, Quantum Rare Earth announced that mining engineer Claude Dufresne, previously on the company's technical advisory board, joined its board of directors.

Southern Arc Minerals (CVE:SA) (OTCQX: SOACF) says it has agreed to sell its Taliwang project to Coke Resources in a cash and share deal.

The company's 90 per cent interest in the project will be sold to Coke for US$500,000 and 15 million Coke shares.

The remaining 10 per cent stake in the Indonesian project is held by the West Sumbawa government.

Earlier this month, Southern Arc's board announced the conditional acceptance of an offer for the Taliwang project, when it concluded its strategic review of its properties.

"This arrangement with Coke Resources meets our objectives of increasing the company's treasury and allowing Southern Arc to focus its time and resources on its priority projects," said chairman and CEO, John Proust.

"Southern Arc's investment in Coke Resources brings new opportunities to the company," he added. "Through Coke Resources we have exposure to two promising projects. We look forward to seeing progress at both the Taliwang and Cristian projects, yet have maintained financial flexibility for Southern Arc's shareholders with a liquid, public-company investment."

Coke Resources is an Australian-based exploration company focused on opportunities in Indonesia's mining sector. Its other project aside from Taliwang, the PT Cristian Eka Pratama, or Cristian, project is a long-life thermal coal property located 15km from the Mahakam River in East Kalimantan on Borneo Island, Indonesia.

The deal is dependent on Coke completing its initial public offering on the Australian Stock Exchange. The company is planning to list up to 21 million shares at 20 Australian cents each.

Southern Arc will retain upside potential with its stake in Coke Resources, owning roughly 15 million shares - equating to an 8 per cent interest.

Last week, the junior explorer concluded its strategic review, and finally announced the start of drilling at its West Lombok property in Indonesia.

The company's main West Lombok project covers a 13 by 7 km structural corridor of mineralization hosting porphyry copper-gold and epithermal gold deposits. The two main epithermal prospects on the property, Pelangan and Mencanggah, cover broad areas of 4 by 5 km and 6.5 by 4.5 km, respectively.

In November, the junior explorer received the required forestry permit, known as a Pinjam Pakai permit, to resume full scale exploration at the asset.

Friday, 21 December 2012

Orvana Minerals Corp. (TSE:ORV) reported an adjusted fourth quarter profit today, as revenues more than quadrupled from the same period last year.

"Our financial performance greatly improved in the fourth quarter, ending the 2012 fiscal year on a positive note," said president and CEO, Bill Williams.

"With the UMZ operation stabilized and EVBC Mine recovering from the ground stability issues, in addition to getting the shaft operational, we expect fiscal 2013 to be very successful both operationally and financially."

For the quarter that ended September 30, the multi-mine gold and copper producer reported a net loss of $2,007, compared to a profit of $8,037 in the fourth quarter of fiscal 2011.

On an adjusted basis, excluding the unrealized loss from the evaluation of its derivative instruments, and the one-time expense from converting an outstanding debenture relating to a royalty, the company swung to a profit of $12,325 or 9 cents per share.

This compares to an adjusted net loss of $4,852, or 4 cents per share, in the year-ago period.

Revenues rose to $50,608 from $10,576 in the fourth quarter of last year.

Orvana's primary asset is the El Valle-Boinas/Carles (EVBC) gold-copper mine in northern Spain. It also owns and operates the Don Mario Mine in Bolivia, processing its copper-gold-silver Upper Mineralized Zone (UMZ) deposit, and is advancing its Copperwood copper project in Michigan, USA.

In the fourth quarter, production increased substantially as Orvana's output included 15,155 ounces of gold, 4 million pounds of copper, 277,081 ounces of silver, and 636,126 pounds of lead.

It sold 18,604 ounces of gold, 5.3 million pounds of copper, 289,356 ounces of silver and 636,126 pounds of lead.

The average realized price for gold sold during the period was higher at $1,666 an ounce, versus $1,479 a year earlier, while the average price for copper improved to $3.50 from $1.93 a pound.

Cash flows provided by operating activities, a key metric in the industry, grew substantially to $29,617 from $91 a year earlier.

The company has seen a number of management changes over the past year, including a new CEO in December 2011, a CFO and Bolivia country manager in June, a COO in August, and a Spain country manager in September this year.

Looking ahead, the company's short term focus is to optimize operations at its EVBC mine in Spain and the UMZ mine in Bolivia to generate increased operating cash flows in order to pay down debt, as well as potentially advance the development of its Copperwood project in Michigan.

Fiscal 2012 guidance for production was 60,000 ounces of gold, 16.53 million pounds of copper and 700,000 ounces of silver.

Mostly due to the delays related to the commissioning of the EVBC shaft and other operational issues at the EVBC mine, production for the year fell short for gold and copper, at 55,929 ounces of gold annd 15.4 million pounds of copper. Silver production of 716,280 ounces was higher than expected, however.

For its next fiscal year, production of 75,000 ounces of gold is expected, along with 18 million pounds of copper and 850,000 ounces of silver.

Its long term goal is to use future cash flow to build long-term value through organic growth and possibly through strategic acquisitions focused mainly on advanced-stage gold and copper properties.

The company ended the fourth quarter with cash and equivalents of $13,200.

Earlier this month, the Michigan Department of Environmental Quality (MDEQ) granted the discharge permits for its Copperwood mine in the state's Upper Peninsula. The National Pollutant Discharge Elimination System permits are for the treated sanitary and process wastewaters at the proposed mine.

Energizer Resources (TSE:EGZ)(OTCBB:ENZR) provided Friday a business update, saying that its next milestone is the preliminary economic assessment for its giant Molo graphite deposit in the first quarter of next year.

Earlier this month, the company said its mineral resource estimate for the deposit, which was defined in less than one year from initial discovery, exceeded its own expectations.

According to Energizer, the resource currently ranks the Molo deposit in Madagascar as the largest known contained graphite deposit in the world. Mineralized zones start from the surface, and continue to a maximum depth of 385 metres, remaining open along strike and at depth.

The company said Friday that its annual general and special meeting of shareholders will be held on Tuesday February 19, 2013 at 10:30am at the Board of Trade conference facilities which is located in First Canadian Place, in downtown Toronto.

Energizer also said it was a key presenter at the 2012 Industrial Minerals Graphite conference in London, UK earlier this month.

More than 20 graphite resource exploration companies attended the event, along with major graphite producers and prominent battery anode producers from around the world.

"We were fortunate to be given the opportunity to present our Green Giant Molo Graphite Project to the top echelon of graphite and battery producers from around the world," said president and COO, Craig Scherba.

"This was an ideal forum to further position the Molo as a deposit that is capable of meeting demand requirements for flaked graphite to both the current traditional refractory industries, as well as the rapidly developing battery power and storage industries."

The company will be providing another update in January, as its next milestone of the Molo PEA approaches.

SilverCrest Mines (CVE:SVL)(NYSE MKT:SVLC)(AMEX:SVLC) announced Friday the final drill results from the phase II drilling program its La Joya property in Durango, Mexico, extending mineralization beyond the area of its current resource estimate.

A new resource estimate is expected in the next several weeks, the silver miner said.

Eight of the 15 holes reported today continued to test the southern extension of the main mineralized trend, with the remaining 7 holes focused on the delineation of the Coloradito and Santo Nino targets.

Silver values in this series of core holes along the main trend and targets ranged from 1.9 to 176.0 grams per tonne (g/t), while silver equivalent based values ranged from 14.1 to 411.5 g/t.

Mineralized intervals ranged from 7.1 to 251 metres, the company said.

SilverCrest noted that drilling results reported from the phase II program so far have extended the main trend beyond the area containing the current inferred resource of 101.9 million ounces of silver equivalent.

The trend has been extended to around 2.5 kilometres with an average width of around 700 metres.

At the Coloradito target, located around one kilometre west of the main trend, drilling to date has identified an area of around 600 metre long, 200 metres wide and at least 250 metres deep starting at surface. A detailed model of the target is being developed, the company said, to provide a better guide for what is considered to be a "potential large bulk tonnage tungsten-molybdenum target".

The company said the mineralization at this target is believed to be associated with a "substantial east-west structure" that cross cuts the width of the main trend mineralization to the west.

Based on company surface mapping, sampling and historic drill hole results, SilverCrest said that the southern area is still believed to be potentially the highest grade area along the main trend.

The company is currently looking at the potential for a near-surface, higher grade, low strip open pit as a conceptual "starter pit" that will be evaluated in a preliminary economic assessment for the project next year.

The phase III drill program, which has already started, will include 30 core holes. The next phase, planned for the first half of 2013, will further expand resources, in-fill higher grade defined areas, and test geophysical anomalies within the company's concessions.

SilverCrest said that the target size of the La Joya mineralization based on work completed so far suggests the possibility of resources that may be 50 to 100 per cent greater than the current resources.

A three year expansion plan is underway to double metals production at the company's Santa Elena mine, while exploration programs are advancing the definition of the large polymetallic deposit at the La Joya property in Durango.

The Vancouver-based company said last month that profit and revenues increased in its third quarter, with record silver production allowing it to raise its annual forecast for the year.